Assume you want to retire early at age 53. You plan to save using one of the following two strategies: (1) save $2,700 a year in an IRA beginning when you are 28 and ending when you are 53 (25 years) or (2) wait until you are 41 to start saving and then save $5,625 per year for the next 12 years. Assume you will earn the historic stock market average of 14% per year. (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value annuity factor table.) Read the requirements. (Click the icon to view the future value factor table.) (Click the icon to view the present value factor table.) Requirement 1. How much out-of-pocket cash will you invest under the two options? Calculate how much out-of-pocket cash you will invest under the two options. Option 1: $ 67,500 Option 2 67.500 Requirement 2. How much savings will you have accumulated at age 53 under the two options? Calculate the total amount of savings that you will have accumulated at age 53 under the two options. (Round the savings to the nearest dollar amount.) Option 1:1 Get more hein- Clear all Check answer Future Value of Annuity of $1 Periods Period 1 1% 2% 3% 4% 1.000 1.000 1.000 1.000 Period 2 2010 2020 2030 2040 2050 2060 2080 Period 31 3.030 3060 3.091 3.122 3.153 3.184 3.246 Period 4 4060 4 122 4184 4.246 4310 Period 51 5.101 5.204 5.309 5.4161 5.526 5.637 5.867 6.105 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 2.100 2.120 2.140 3.310 3.374 3.440 3.506 3572 3640 4.375 4.506 4.641 4779 4.921 5.066 5.215 5.368 6353 6.610 6.877 7154 7442 14% 1.000 16% 18% 20% 1.000 1.000 1.000 2.160 2.180 2200 Period 6 6.152 6.308 6468 6.633 6802 6975 7.336 7.716 8 115 8.536 8.977 9442 Period 7 7.214 7434 7662 7.896 8.142 8.394 8.923 9487 10 089 10.730 11.414 12.142 9930 12.916 arest doar Period & 8286 8583 8.892 9214 9.549 9897 10 637 11 436 12.300 13.233 14.240 15.327 16 490 Period 9 9.369 9.755 10.150 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20 799 Period 10 10 462 10.950 11 404 12 006 12.5/8 13.181 14 487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12 808 13.486 14.207 14 972 16 645 18.531 20.655 23.045 25.733 28.756 32.150 Period 12 12.083 13.412 14 192 15.026 15.917 16.870 18.977 21 384 24 133 27.271 30 850 34931 39 581 Period 13 13.009 14.680 15618 16 627 17 713 18 882 21.495 24 523 28 029 32 080 36.786 42219 48 407 Period 14 14.947 15.974 17 086 18:292 19.590 21.015 24.215 27 975 32 393 37.581 43 672 50.818 50 190 Period 15 16 097 17 293 18.599 20 024 21 579 23 276 27 152 31.772 37 280 43842 51.660 60 9665 ges Period 20 22.019 24. 297 26.870 29.778 33 066 36 786 45.762 57 275 72 052 01.025 115.380 Parind 25 28 243 32 030 36 450 41.646 47 727 54 865 73.100 98 347 133.334 181 871 249 214 146 620 MAR 72036 10 688 471.081 all Print Done Present Value of Annuity of $1 5076 4917 5780 5 582 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0909 0893 0.877 0.862 0847 0.833 Period 2 1.970 1.042 1.913 1.886 1859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1528 Period 3 2.941 2884 2829 2.775 2.723 2.673 2.577 2487 2402 2.322 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2914 2798 Period 5 4.853 4.713 4.580 4 452 4.329 4.212 3.993 3.791 Period 6. 5795 5601 5417 5.242 Period 7 6.728 6472 6230 6.002 Period 8 7652 7 325 7.020 6.733 6.483 6.210 5747 5.335 4.968 4 639 4.344 4078 3837 Period 9 8.566 8162 7.786 7.435 7.108 6802 6.247 5750 5.328 4.946 4.607 4303 4.001 Period 10 0471 8963 8530 8.111 7.722 7.300 6.710 6.145 5650 5216 4833 4494 4.192 2.090 2.589 3 605 3.433 3.274 3 127 2901 4.623 4.356 4 111 3.889 3 685 3.498 3.326 o the nearest dollar amo 5.206 4 868 4564 4.288 4.039 3812 3605 8.300 7 887 Etext pages Get m Period 11 10.308 9.787 9.253 8.760 7 139 6.495 5938 5453 5029 4.666 4327 Period 12 11.255 10.575 9.964 0.385 8803 8384 7.530 6014 6.194 5.000 5197 4.793 4.439 Period 13 12 134 11.348 10 636 9 966 9304 8.863 7.904 7.103 6424 5842 5342 4910 4.533 Period 14 13.004 12 106 11.296 10.563 9.800 9.206 8.244 7.367 6628 6002 5.468 5.000 4011 Period 15 13 806 12.840 11.038 11.118 10.380 9712 8.560 7606 6811 6142 5575 5002 4.575 Period 20 18 046 16.351 14 877 4.870 Parind 25 22 123 19 125/17 413 13 500 12 462 11 470 9.818 8514 7409 6623 5.029 5363 15822 14 004 12 7831 1067519.07778436873 8.00 5457 Clear all Che Print Done K Assu endir Future Value of $1 ning ou will stock Periods 1% 2% 3% 4% 5% Period 1 1.010 1.020 1030 1.040 1.050 6% 1.060 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1260 Read Period 4 1.041 1.082 1.126 1.170 1216 1262 1.360 Period 5 1.051 1.104 1.159 1217 1.276 1.338 1469 1.611 1.762 1.925 8% 10% 12% 14% 16% 18% 20% 1.080 1.100 1.120 1.140 1.160 1.180 1200 1.166 1210 1.254 1.300 1.346 1.331 1406 1482 1.561 1.4641 1.574 1.689 1.811 1.939 2074 2288 2488 1.382 1440 1643 1728 2.100 Requ Period 10 Period 61 1.062 Period 7 1.072 Period 8 1.083 Period 9 1.004 1.105 1340 1.419 Calc Period 11 1.116 1243 1.384 1530 Period 12 1.127 1.268 Opti Period 13 1.138 1204 Opti Period 14 1.149 Period 15 1:161 Req Period 20 Parind 25 1220 1282 1.126 1.194 1.266 1587 1.772 1974 2.196 2.436 2.700 2966 1.149 1230 1.316 1407 1.504 1.714 1949 2211 2502 2826 3.185 3583 1.172 1.267 1.360 1477 1.504 1,851 2144 2476 2.853 3.278 3.750 4.300 1.195 1.305 1423 1551 1689 1999 2.368 2.773 3.252 3.803 4435 5.160 1.219 1.344 1480 1.629 1.791 2.150 2504 3.106 4411 5234 6.190 1.710 1808 2332 2.853 3.479 14201 1.601 1.796 2012 2.518 3.138 1.400 1.666 1880 2.133 2.720 3.452 1.319 1.513 1,732 1.980 2261 2.037 3.797 4887 1.346 1558 1.801 2079 2.397 3.172 4.177 5.474 1.486 1806 2.191 2653 3.207 4.661 6727 9.646 1641 2004 2.600 3388 4290 6848 10.835 17.000 3.707 4226 5.117 6.176 7.430 3.806 4.818 5.936 7280 8910 4.363 54921 6.886 8500 10 000 6261 7.988 10 147 12839 7138 9206 11.974 15 407 13.743 19.461 27 303 28 42 40 8748225306 38 33 Calc lar amount) Opt Print Done Refere Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 Period 3 0.971 0.942 0.915 0.889 Period 4 0961 0.924 0888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 18% 20% 5% 6% 10% 16% 8% 12% 14% 0.952 0.943 0.926 0909 0.893 0.877 0.862 0847 0.83 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.69 0.864 0.840 0.794 0.751 0712 0675 0.641 0.609 057 0.792 0.735 0.683 0636 0.592 0552 0516 0.48 0.681 0621 0.567 0.519 0476 0.437 0.40 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 Period 7 0.933 0871 0.813 0.760 0.711 0665 Period 9 0914 ages Get m 0 456 0.377 0.312 0215 0.149 0375 0295 0233 0146 0.002 0.630 0.564 0507 0456 0410 0.370 0.33 0583 0.513 0452 0.400 0.354 0.314 0.27 Period 8 0923 0.853 0.789 0.731 0.677 0.627 0.540 0467 0404 0.351 0.305 0.206 0.23 0837 0.766 0.703 0.645 0502 0.500 0424 0.301 0.308 0.263 0225 0 19 Period 10 0.905 0 820 0.744 0.676 0.614 0.558 0.463 0300 0322 0.270 0227 0.191 0.16 Period 11 0 806 0.804 0.722 0650 0.585 0527 0429 0350 0287 Period 12 0.887 0788 0.701 0.625 0.557 0497 0.397 0319 0257 Period 13 0.879 0.773 0.681 0.601 0.530 0.409 0.368 0.290 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 Period 15 0861 0743 0642 0.555 0.481 0417 0315 0239 Period 20 0 120 0.673 0.554 Period 25 0.780 0.610047R o the nearest dollar amo 0.237 0.195 0.162 0.13 0208 0168 0.137 011 0.229 0 182 0.145 0.116 0.09 0.205 0.100 0.125 0.099 0.07 0183 0 140 0.108 0.084 0.06 0.104 0073 0051 0037 0.02 --- 0038 0024 0.016 001 Clear all Ch Print Done